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The 3PL Market Slump Is Over

Aug. 13, 2010
As the market for third-party logistics improves, manufacturers will see costs begin to rise.

The demand for third-party logistics (3PL) services dropped off dramatically in 2009, as their main customers -- manufacturers and retailers -- had fewer products that needed to be warehoused and transported. After reaching an all-time high of $127 billion in 2008, the market for U.S. 3PLs fell to $107 billion in 2009, according to market research firm Armstrong & Associates.

Part of the reason for the decline was a drop in prices in the face of soft demand last year. If all goes well this year -- early results have seen double-digit improvements in several 3PL market segments -- then the market as a whole could bounce back to $121 billion for 2010, based on Armstrong's estimates. That also means, inevitably, that manufacturers should expect to see pricing for 3PL services start climbing back to previous levels.

About the Author

Dave Blanchard | Senior Director of Content

Focus: Supply Chain

Call: (941) 208-4370

Follow on Twitter @SupplyChainDave

During his career Dave Blanchard has led the editorial management of many of Endeavor Business Media's best-known brands, including IndustryWeekEHS Today, Material Handling & LogisticsLogistics Today, Supply Chain Technology News, and Business Finance. He also serves as senior content director of the annual Safety Leadership Conference. With over 30 years of B2B media experience, Dave literally wrote the book on supply chain management, Supply Chain Management Best Practices (John Wiley & Sons, 2010), which has been translated into several languages and is currently in its second edition. He is a frequent speaker and moderator at major trade shows and conferences, and has won numerous awards for writing and editing. He is a voting member of the jury of the Logistics Hall of Fame, and is a graduate of Northern Illinois University.

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